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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: RDM who wrote (47948)	1/31/1999 1:44:00 AM
From: Elmer	Read Replies (3) \| Respond to of 1580419

Re: "Intel is an extraordinary company with extraordinary profits. While they may be able to have a low manufacturing cost for DIXON they must keep the profits coming in to preserve shareholder value. $6 Billion in profits does not happen without selling lots of parts 100,000,000) and making a lot of profit on each one ($60). It will be interesting to look at the results of 1999. Will Intel continue to maintain the $60 after tax profit per chip? In addition to profits Intel has $5.1B per year in expenses not associatedd with manufacturing (R&D, Marketing, G&A, etc). We must not forgfet the $3B in income taxes. This $8.1B amounts to another $81 per chip or a total of $141 "fixed costs" per chip that they must average to maintain shareholder value. These costs I describe as fixed becuase they do not change with die size or manufacturing efficiency. " RDM, Processors are not the only chips Intel makes. When you add in the chipsets, the number of units is likely over 300 million. When you also add in the controllers, network devices and flash memory the number may exceed 500 million. Surely you must go back and redo your numbers. EP